The government of Kenya, through the Kenya Mortgage Refinance Company (KMRC), has partnered with the saccos to offer affordable mortgage financing at fixed single digit interest rates for repayment periods stretching to a maximum of 25 years (or 300 monthly installments).
The single digit interest rates and the long period provided will allow sacco members with relatively lower net incomes to afford financing for outright purchase with minimum and maximum loan amounts pegged at Sh500,000 and Sh4,000,000 respectively.
First, and through partnership with private sector and other development partners, the government is supplying affordable housing units in various parts of the country.
The second government intervention in realisation of the affordable housing agenda is through sourcing funds from development partners which, through the KMRC is advanced to primary mortgage lenders or saccos in this case for onward lending to end home buyers at affordable single digit interest rates.
It is a historic moment for the sacco movement as it officially partners with the government to attain a national agenda; The affordable housing for the majority of Kenyans through its elaborate network and goodwill across the country.
